Delhi NCR’s real estate market registered sharp growth in both commercial leasing and high-end residential sales during the first half of 2025, according to data released by Knight Frank India. The twin momentum, evident in both corporate and luxury housing segments, points to an evolving market dynamic driven by infrastructure expansion, global corporate presence, and growing demand for premium living spaces.
Commercial Office Market Reaches 7.2 Million Sq Ft Leasing
Delhi NCR’s commercial office market reached an all-time high leasing volume of 7.2 million sq ft in the January–June 2025 period, marking a 27% year-on-year increase. This performance positioned the region as the second-largest office leasing market in the country after Bengaluru. Gurugram emerged as the primary contributor, accounting for 65% of the total leasing activity.
The average deal size stood at approximately 54,000 sq ft. A notable structural shift was seen in the composition of tenants, with Global Capability Centres (GCCs) accounting for 31% of total leasing—up from 11% during the same period last year. This rise reflects continued interest from multinational corporations in setting up long-term operations in NCR.
Average office rental rates also saw upward movement, rising 8% year-on-year to Rs 93.5 per sq ft per month. The growth was supported by consistent demand, especially in premium-grade A spaces, which remain in short supply in the micro-markets of Gurugram, particularly along NH-48, Udyog Vihar, and DLF Cyber City.
Noida, in contrast, experienced a decline in leasing share, dropping from 41% in H1 2024 to 24% in H1 2025. The reduction is largely attributed to delays in fresh office space additions and a more limited inventory of grade-A stock.
Premium Segment Sees Sharp Upsurge
On the residential front, the broader NCR market recorded a moderation in both new launches and sales volumes. Total new residential unit launches dropped by 17% to 25,233 units, while overall sales dipped 8% to 26,795 units in H1 2025. However, this overall slowdown masked a significant shift in buyer focus from mid-income housing to high-value properties.
A particularly striking trend was the 2,550% increase in sales of ultra-luxury homes priced above Rs 50 crore. This surge was concentrated in projects located in select pockets of Delhi and Gurugram, with multiple properties witnessing over 60% bookings shortly after launch. Properties priced between Rs 20 crore and Rs 50 crore also saw a 1,233% jump in transaction volumes.
As per the Knight Frank data, homes priced above Rs 2 crore now account for 57% of all residential units sold in NCR, up from 43% in the same period last year. This shift indicates growing demand from wealthy Indian buyers, non-resident Indians (NRIs), and family offices for large-format homes in well-connected, amenity-rich locations.
Gurugram Dominates Both Office and Housing Markets
Gurugram continued to dominate the region's real estate narrative in H1 2025. On the commercial side, it maintained its status as NCR’s prime office destination. In the housing segment, it accounted for 51% of the region’s total residential sales and 55% of new launches.
High-demand corridors such as Dwarka Expressway, Southern Peripheral Road (SPR), and Sohna Road remained preferred zones for both luxury apartment buyers and developers. The upcoming infrastructure linkages—particularly metro line extensions and expressways—have played a role in directing capital and construction activity toward these zones.
In contrast, Noida and Greater Noida collectively contributed to 30% of total housing sales. Greater Noida gained relatively more traction owing to its larger land parcels and expected value appreciation around upcoming infrastructure projects like the Noida International Airport at Jewar.
Prices Rise Across Segments; Affordable Housing Weakens
The average residential price across the NCR market rose by 14% to Rs 5,535 per sq ft in H1 2025. Premium localities such as Golf Course Road in Gurugram and South Delhi led the price appreciation. Developers in these micro-markets are increasingly focusing on finishing standards, landscape amenities, and energy-efficient building systems to cater to lifestyle-driven buyers.
The affordable housing segment, however, showed signs of distress. Sales of homes priced between Rs 25 lakh and Rs 50 lakh dropped by 37% on a year-on-year basis. Mid-income homebuyers appear to be affected by rising interest rates and stagnant wage growth, while developers are also reallocating resources toward higher-margin luxury projects.
Infrastructure Momentum Sustains Long-Term Market Optimism
Much of the sustained activity in both the commercial and residential segments of NCR is supported by infrastructure expansion. The construction of new expressways, the extension of metro rail lines, and the ongoing work at major airports in Noida and Hisar are expected to keep the region’s property market competitive and well-integrated with national and international business corridors.
Despite the slowdown in affordable housing and the uneven supply situation in Noida, industry stakeholders remain optimistic about the second half of 2025. Market experts anticipate continued traction in the commercial space, led by GCCs and IT/ITES firms, while residential developers are likely to double down on high-ticket offerings.
Delhi NCR’s real estate market in H1 2025 has bifurcated into two strong-performing verticals—commercial leasing and ultra-luxury residential sales. Gurugram remains the epicentre of this transformation, offering the best blend of infrastructure readiness, connectivity, and premium developments. With global companies expanding operations and affluent buyers actively investing in lifestyle homes, the region is undergoing a shift from speculative purchases to end-user-led, infrastructure-aligned growth.
The rest of 2025 will likely see developers refining their offerings to meet the rising demand in premium segments while navigating the challenges posed by affordability pressures in the lower and mid-income categories. The strong infrastructure pipeline, coupled with consistent global interest, ensures that NCR remains one of the most dynamic real estate markets in India.
